- CGI ( NYSE: GIB ) plans to enter into a private agreement with CDPQ for the purchase for cancellation of 3.3M of its Class A subordinate voting shares held by CDPQ for a price of $119.58/Class A Share.
- The price indicates a discount to Feb.24 closing price.
- On completion, CDPQ will continue to hold ~19.18M Class A Shares, representing ~8.16% of CGI's total outstanding shares.
- Post the transaction, CDPQ will remain one of the main shareholders of CGI.
- "CGI has the strength and capital resources to execute on our Build and Buy profitable growth strategy given our strong balance sheet and excellent cash generation, combined with $2.8B of cash readily available at the end of December 2022," Co-Chair of the Board, CGI Julie Godin commented.
- Transaction is expected to be entered into later today and settled on Feb. 28, 2023.
- The share repurchase will be made under CGI's normal course issuer bid wherein the company is authorized to repurchase up to 18.8M Class A Shares by Feb.5, 2024.
For further details see:
CGI plans to repurchase 3.34M of its shares held by CDPQ